Citi’s Institutional Virtual Accounts Usage Increase Significantly With Global Clients Frictionless Experience Helps Drive Client Growth Into New Global Markets

Rhea-AI Summary

Citi Virtual Accounts has experienced significant growth in 2022, with account balances increasing by 82% and adoption growing by 33%. This innovative solution simplifies bank accounts, offers real-time cash management, and enables instant access to cash capabilities. Live in the U.S. and 16 Western European countries, it aims to expand into Asia Pacific and Canada. The service has been recognized as the Best Global Virtual Accounts solution by Global Finance in 2022, showcasing its impact on clients' digital transformation and efficiency.

Positive

• Account balances grew by 82% in 2022.
• Adoption rate increased by 33%.
• Highly recognized as Best Global Virtual Accounts solution by Global Finance in 2022.
• Streamlined onboarding process cut down from months to 24 hours.
• Available in 41 currencies, enhancing transaction flexibility.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- Citi® Virtual Accounts continues its strong growth with institutional clients including corporations, financial institutions, ecommerce and insurance companies. This growth comes as multinational companies across industries continue to use Citi’s solutions to help improve operational efficiency, reduce costs, accelerate time to market and ramp up their digitization initiatives. In 2022, account balances grew by 82%, accompanied by 33% growth in adoption.

Citi Virtual Accounts is a global solution that offers many benefits over traditional account structures including:

• Bank account simplification
• Real-time cash concentration and account segregation based on a company’s operating model
• Instant access to cash management capabilities
• A fully automated and digitalized onboarding experience
• Streamlined execution of documentation and minimized IT requirements for clients – with accounts opened and transactional within 24 hours. Previously, this process could take months
• Domestic, international and instant payment options across multiple payment methods, spanning high value and low value payments
• Offered across 41 currencies

“We are pleased with the rapid adoption of Virtual Accounts by our clients, allowing them to implement their ecommerce strategies and rapidly expand into new markets -- without investing heavily in their own technical infrastructure,” said Stephen Randall, Global Head of Liquidity Management Services, Citi Treasury and Trade Solutions. “Virtual Accounts also helps improve the client experience by automatically reconciling payables and collections, while providing a seamless onboarding experience.” Time to market for clients can be accelerated with Citi Virtual Accounts as an unlimited number of virtual accounts can be added on-demand digitally, in a fraction of the time it takes to set up traditional bank accounts.

Citi continues to invest in technology innovation to help its clients grow. Currently live in the U.S. and in 16 countries in Western Europe, Citi Virtual Accounts are offered across 41 currencies. Additional plans include launching in the Asia Pacific treasury hubs of Hong Kong and Singapore in early 2023, followed by six additional countries in Asia Pacific and Canada throughout the year.

Recognized as Best Global Virtual Accounts solution by Global Finance in 2022, Citi Virtual Accounts continues to push clients ahead on their digital transformation journeys. The service offers access to multiple payment methods including high and low value payments made through wires, ACH, instant payments and checks.

Client Usage & Benefits:

Matt Cornwall, Head of Treasury Operations at Chubb EMEA, which implemented Virtual Accounts for three group entities, describes the solution as offering a broad range of benefits, “Citi provided a collaborative relationship with Chubb to deliver a Virtual Account solution effectively and within our timescales. With a reduction of 200+ physical bank accounts, the outcome has enabled Chubb to operate with a more streamlined banking structure, centralized liquidity, improved controls and simplified reporting, alongside a material reduction in back-office admin processes that greatly improved efficiency.”

The Hut Group, an ecommerce retailer company headquartered in the United Kingdom, was also able to gain improved visibility into their cash flows by implementing virtual accounts. Ian Armstrong, Treasurer of The Hut Group explains:

“By working with Citi, our transition towards a more centralized in-house bank (IHB) model was a seamless experience. Citi’s Virtual Account solution enabled us to implement a new account structure quickly, giving us access to a market leading payments network, greater flexibility in recording intercompany positions and enhanced visibility of different project cash flows within the business. The success of our transformation journey is rooted in the relationship we have with Citi and we look forward to our continued collaboration“

Citi Treasury and Trade Solutions (TTS) enables our clients' success by providing an integrated suite of innovative and tailored cash management and trade finance services to multinational corporations, financial institutions and public sector organizations across the globe. Based on the foundation of the industry's largest proprietary network with banking licenses in over 90 countries and globally integrated technology platforms, TTS continues to lead the way in offering the industry's most comprehensive range of digitally enabled treasury, trade and liquidity management solutions.

About Citi

Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in more than 160 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.

Additional information may be found at www.citigroup.com | Twitter: @Citi | YouTube: www.youtube.com/citi | Blog: http://blog.citigroup.com | Facebook: www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi

View source version on businesswire.com: https://www.businesswire.com/news/home/20221110005430/en/

Media:

Nina Das

Citi Institutional Clients Group

+1 (212) 816-9267

Nina.Das@citi.com

Source: Citi

FAQ

What are the key benefits of Citi Virtual Accounts?

Citi Virtual Accounts simplify bank accounts, provide real-time cash management, enable instant access to cash capabilities, and reduce onboarding time to 24 hours.

In which regions is Citi Virtual Accounts currently available?

Citi Virtual Accounts are live in the U.S. and 16 countries in Western Europe, with plans to expand to Asia Pacific and Canada.

What was the growth rate of account balances for Citi Virtual Accounts in 2022?

Account balances grew by 82% in 2022.

How fast can clients onboard to Citi Virtual Accounts?

Clients can complete the onboarding process within 24 hours.

What recognition did Citi Virtual Accounts receive in 2022?

Citi Virtual Accounts was recognized as the Best Global Virtual Accounts solution by Global Finance in 2022.